Peloton Interactive (NASDAQ:PTON) Stock Breaks Below 200-Day Moving Average After Analyst Downgrade

Key Points

• Peloton shares fell below their 200-day moving average, trading as low as $5.23 and last changing hands at $5.25 after Goldman Sachs cut its price target from $7.50 to $6.50, while retaining a Buy rating.
• Analyst sentiment is mixed: Peloton has four Buy, seven Hold and one Sell ratings, resulting in a consensus Hold rating and an average price target of $7.56.
• Insiders sold 217,712 shares worth approximately $1.18 million over the past three months, while institutional investors own 77.01% of the company; the stock’s 200-day moving average is $5.27.

Peloton Interactive, Inc. (NASDAQ:PTON - Get Free Report) crossed below its 200-day moving average during trading on Monday after The Goldman Sachs Group lowered their price target on the stock from $7.50 to $6.50. The stock has a 200-day moving average of $5.27 and traded as low as $5.23. The Goldman Sachs Group currently has a buy rating on the stock. Peloton Interactive shares last traded at $5.25, with a volume of 5,737,280 shares traded.

Other research analysts also recently issued research reports about the stock. Weiss Ratings raised shares of Peloton Interactive from a "sell (d+)" rating to a "hold (c-)" rating in a report on Friday, October 2nd. Telsey Advisory Group reiterated a "market perform" rating on shares of Peloton Interactive in a research report on Monday, August 3rd. Morgan Stanley cut Peloton Interactive from an "equal weight" rating to an "underweight" rating and reduced their price objective for the stock from $5.00 to $4.50 in a research note on Tuesday, September 8th. Finally, UBS Group decreased their price objective on Peloton Interactive from $11.00 to $10.00 and set a "buy" rating on the stock in a research report on Tuesday, September 8th. Four analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus price target of $7.56.

Insiders Place Their Bets

In other news, CAO Saqib Baig sold 10,000 shares of the company's stock in a transaction dated Tuesday, October 20th. The shares were sold at an average price of $5.45, for a total value of $54,500.00. Following the transaction, the chief accounting officer directly owned 257,729 shares in the company, valued at approximately $1,404,623.05. This represents a 3.74% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Karen Boone sold 25,000 shares of the firm's stock in a transaction dated Monday, August 17th. The stock was sold at an average price of $5.35, for a total transaction of $133,750.00. Following the completion of the transaction, the director directly owned 236,063 shares in the company, valued at $1,262,937.05. This represents a 9.58% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 217,712 shares of company stock valued at $1,177,289 in the last three months. 1.30% of the stock is owned by company insiders.

Institutional Investors Weigh In On Peloton Interactive

A number of institutional investors and hedge funds have recently added to or reduced their stakes in PTON. Fifth Third Wealth Advisors LLC grew its stake in Peloton Interactive by 92.8% in the 3rd quarter. Fifth Third Wealth Advisors LLC now owns 24,364 shares of the company's stock worth $122,000 after acquiring an additional 11,725 shares in the last quarter. Sterling Capital Management LLC increased its position in shares of Peloton Interactive by 37.0% during the third quarter. Sterling Capital Management LLC now owns 10,218 shares of the company's stock worth $51,000 after acquiring an additional 2,759 shares during the period. Kirr Marbach & Co. LLC IN raised its stake in shares of Peloton Interactive by 1.4% during the third quarter. Kirr Marbach & Co. LLC IN now owns 491,557 shares of the company's stock valued at $2,453,000 after acquiring an additional 6,992 shares in the last quarter. Abel Hall LLC raised its stake in shares of Peloton Interactive by 40.2% during the third quarter. Abel Hall LLC now owns 26,989 shares of the company's stock valued at $135,000 after acquiring an additional 7,742 shares in the last quarter. Finally, Assenagon Asset Management S.A. boosted its holdings in shares of Peloton Interactive by 632.5% in the third quarter. Assenagon Asset Management S.A. now owns 307,290 shares of the company's stock valued at $1,533,000 after purchasing an additional 265,341 shares during the period. Institutional investors own 77.01% of the company's stock.

Peloton Interactive Price Performance

The stock has a market cap of $2.30 billion, a PE ratio of 43.75, a price-to-earnings-growth ratio of 0.42 and a beta of 2.54. The business has a fifty day moving average of $5.15 and a 200-day moving average of $5.27.

Peloton Interactive (NASDAQ:PTON - Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The company reported $0.13 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.11 by $0.02. The company had revenue of $607.70 million for the quarter, compared to analysts' expectations of $596.60 million. Peloton Interactive had a negative return on equity of 23.92% and a net margin of 2.58%. Peloton Interactive's revenue was up .1% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.05 earnings per share. As a group, equities research analysts predict that Peloton Interactive, Inc. will post 0.31 EPS for the current year.

Peloton Interactive Company Profile

Peloton Interactive, Inc is a connected-fitness company that combines exercise equipment, digital content and subscription services. Its product portfolio includes the Peloton Bike, Bike+, Tread treadmill, Row rowing machine and related accessories, apparel and fitness products. The company's equipment is designed to connect users with live and on-demand instructor-led workouts through integrated screens and digital platforms.

Peloton offers subscription memberships that provide access to classes in cycling, running, strength training, yoga, meditation, rowing and other fitness disciplines.

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